Risks and Ethical Issues in Startup Launching

Running head: MANAGEMENT
Management
Name of the Student
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Author Note

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Executive summary
The purpose of this report is to access various kinds of risks and issues faced by entrepreneurs
during launching a startup. In this report, the various risk as well as ethical issues to consider as
an entrepreneur as well as an investor will be discussed. Moreover, identification of three top
risks while launching an startup will also be performed in this report. Both personal experiences
and real case studies of startups will be incorporated in this report.

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Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
Risk assessment:..........................................................................................................................4
Ethical issues:..............................................................................................................................6
Top three risks.............................................................................................................................8
Conclusion.......................................................................................................................................9
Reference List................................................................................................................................10

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Introduction
Entrepreneurship is referred to the process of launching, designing as well as running a
new business that is often initially a small business. The individuals who create these businesses
are known as entrepreneurs. When it comes to a starting up a company, it may be initiated by
individual founders or entrepreneurs for searching for a repeatable as well as scalable business
model. In this era of competition, a good number of rules and regulations need to be followed by
entrepreneurs while opting for a startup. According to researchers, investing in startups is highly
risky, speculative and investment in the same should only be made by individuals who have the
potential to afford the risk of the entire investment (Green, Upson and Velez-Castrillon 2017,
p.56). While a good number of entrepreneurs possess the ability of having a basic understanding
of rules and regulations, majority of them fail to think about the legal and ethical implications of
initiating a startup. In this report, the various risk as well as ethical issues to consider as an
entrepreneur as well as an investor will be discussed. Moreover, identification of three top risks
while launching an startup will also be performed in this report.
Discussion
Risk assessment:
Risk of Pivoting
The term pivoting can be defined as the act of shifting to a new strategy by a startup
company. It is believed that successful pivoting has the potential to drastically change the whole
organization. However, in several cases, it has been evidenced that a company only possess one
crucial issue that needs to be addressed and only one aspect of the company requires to be